The Federal Airports Authority of Nigeria (FAAN) has disclosed its plan to increase Passenger Service Charge (PSC) with effect from August 1, 2020.
In a letter signed by the managing director of FAAN, Captain Rabiu Hamisu Yadudu, addressed to the Airline operators committee, the Authority stated that, it will increase the PSC from N1,000 to N2,000 for domestic airlines and from US$50 to US$100 for international travel.
The letter issued yesterday, titled Implementation of the Approved New Passenger Service Charge (PSC) Effective August 1, 2020 read in part, “I wish to inform you of our intention to commence implementation of the new Passenger service Charge (PSC) increment from N1, 000 (One Thousand Naira) to N2,000 (Two Thousand Naira) for PSC domestic and US$ 50 (Fifty Dollars) to US$ 100 (One Hundred Dollars) for international effective August 1, 2020
Explaining the new development, the FAAN boss said is premised on the approval for the increment given by the minister of Aviation in a letter referenced FMT/FMA/COM/T/69 dated 3rd August, 2017.
“We recently informed the minister of Aviation of our intention to commence the implementation effective August 1, 2020;” the FAAN boss said.
According to Yadudu, the airports managers have engaged the Nigeria Civil Aviation Authority (NCAA) and relevant stakeholders which had delayed the implementation from 2017 till date.
Yadudu added that the cap on the value of PSC was simply outdated as the last review of PSC on domestic routes from N350 to N1000 and US$35 to US$50 dollars on the international route was on May 1, 2011 and March 21, 2011 respectively, all seven years ago.
“This does not correlate with the prevailing economic situation and the index to meet with the needs of today and future growth of passenger traffic and airport development, most especially for the airport to upgrade post-covid-19”.
The letter further referred that Bi-Courtney Aviation Services Limited (BASL) operators of the MMA2 for years, have been charging N2500 on its PSC and despite the operating PSC some domestic airlines still moved from the General Aviation Terminal (GAT) to the MMA2 because of FAAN’s inability to expand the GAT.
“This increase therefore affords FAAN the needed funds to upgrade our facilities to accommodate new airlines including the anticipated national carrier”.
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